THE HIGH COST OF OVERPRICING...
I see it everyday in the MLS when I look for properties for my buyer-clients, or work on pricing for a listing appointment, or talk to sellers whose listing has expired and they don't understand why-- the high cost of overpricing.
Sellers who have a skewed perspective on the value of their home should realize that correct pricing is their most valuable marketing tool. When a home is overpriced, it is viewed (from the buyer's perspective) against other similarly priced homes. If those homes have more amenities, larger square footage, better location, etc., then the over-priced home only serves to showcase the other homes as being of better value within the price range.
These two actual property history charts from our MLS show how this works with the sellers "chasing the market down".
Home buyers are savvy, they know how long your home has been on the market, how many price reductions you've made, and what other homes are selling for in the neighborhood. Bottom line: When your home is overpriced you lose negotiating power with the buyer.
It's not always the sellers' fault. Some real estate agents will provide an inflated value of a home on a listing appointment just to secure the listing. Then once the property is for sale, they'll use the lack of showings and/or offers to suggest reducing the price.
The best way to avoid overpricing your home is to select an agent who provides an honest overview of the what's happening in the local real estate market and partners with you in determining the best list price. Combine that with great staging, professional photography, and a bangin' marketing plan and you'll get the best result-- a quick sale!